Monetary policy effectiveness in the context of global inflation growth: Evidence from North Macedonia

periods of heightened global inflationary pressures. The recent global surge in prices, largely triggered by disruptions in supply chains and the restricted availability of oil and energy products, has significantly affected small and open economies. North Macedonia represents a particularly relevant case, as its high external dependency has amplified the transmission of global shocks into domestic price dynamics. This study investigates the effectiveness of monetary policy in stabilizing inflation and safeguarding macroeconomic balance in North Macedonia. The analysis focuses on the transmission channels through which monetary measures operate and evaluates the extent to which domestic policy responses mitigate external inflationary pressures. The findings reveal that while inflationary trends were predominantly driven by global factors, monetary policy interventions contributed meaningfully to cushioning adverse effects, supporting price stability, and preserving the broader macroeconomic framework.
Keywords: Monetary Policy, Inflation, Global Shocks, Macroeconomic Stability, North Macedonia.